Practicing Success
The simple interest on a sum of money invested for a period of 10 years is equal to $\frac{4}{5}$th of the sum invested. What is the rate of simple interest per annum that is being given? |
9% 8.5% 10% 8% |
8% |
Simple interest is equal to \(\frac{4}{5}\)th of the sum invested. Simple interest = \(\frac{4}{5}\) × Principal Simple Interest = \(\frac{Principal × Rate × Time }{100}\) \(\frac{4}{5}\) × Principal = \(\frac{Principal × Rate × 10 }{100}\) Rate = 8% |